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Listen Up Millennials! You Need To Know About Health Savings Accounts

Lively · February 22, 2017 · 4 min read


Millennials get a bad rap. It seems everyone has an opinion about the largest generation, and much of it stumbles into stereotypes.

However, at least one publication had something good to say about Gen Yers.

MarketWatch dispelled a common myth about millennials by sharing a survey from Apparently, millennials are better at saving money than other age groups. That’s encouraging news.

One savings option appears to be the perfect fit for the professional and personal lifestyles of many millennials. It’s the Health Savings Account (HSA).

What is a Health Savings Account?

An HSA is a two-part plan that offers relief from the squeeze of rising healthcare costs. It combines coverage for healthcare expenses and a tax-favored savings plan. Here’s how it works.

  • The medical plan pays for covered health expenses. To qualify as part of the HSA plan, the medical plan must be a high-deductible health plan (HDHP).  But those looking for medical plans shouldn’t let the high deductible scare them. HSAs may offer a workable solution. More about that later.

  • The savings plan helps account holders pay for covered healthcare expenses. The best part is its tax-saving trilogy. Money going into the savings account, plus any earned interest and investment gains, and the withdrawals used for qualified health expenses are all tax-free.

How are HSAs a Good Fit for Millennials?

HSAs have a few features that millennials may find attractive.

Own it

Millennials are a mobile crowd. More than half are looking for a new job. Because individuals own the HSA account, they can take it with them – even if they decide to change jobs. And remaining funds roll over year after year. No “use it or lose it” restrictions on HSAs. The “use it or lose it” feature is commonly seen in the FSA (Flexible Spending Account). HSA ≠ FSA!

Control it

Millennials love having information and options (I mean who doesn’t, right?). They are more likely to do online comparisons and look for the best deals. Because those with HSAs own the account, what they do with savings is their choice. Here are a few examples.

  • Account holders can use all or part of their savings to pay for eligible healthcare expenses

  • They can pay for healthcare expenses out-of-pocket to grow savings and earn interest and then pay themselves back with those HSA funds down the road if they want

  • Individuals can invest their funds and watch returns grow tax-free

The flexibility of HSAs allows for the use of funds for either short-term or long-term needs. HSAs help millennials focus on savings, not just healthcare spending.

They Act on Financial Future

Student debt, high unemployment, and other financial worries are huge factors in millennials’ lives. Education is in a millennial’s DNA. They are hands-on in looking for ways to save money to help relieve some of those worries. The HSA design can help millennials act on their financial future.

For example, remember that high-deductible that goes with the medical plan? While it may sound scary, it potentially saves more by reducing costs. How?

  • High-deductible health plans have significantly lower premiums than other health plan options

  • Healthy millennials with lower healthcare expenses save money from reduced premiums

  • They can maximize savings from reduced premiums, while also easing tax burdens

  • With careful planning, they cover future healthcare expenses and have savings left over

They own it. They control it. They act on it. Sounds like a plan millennials will love.

Disclaimer: As always, the information provided is for your general background only, and is not intended to constitute legal or tax advice as to your specific circumstances. We recommend you review legislation with legal counsel and visit your tax advisor for tax assistance and advice. We also recommend that you optimize your healthcare spending, maximize your savings, and better your livelihood!



Lively is the modern HSA experience built for—and by—those seeking stability in the ever-shifting healthcare landscape. By harnessing modern innovation and deep industry expertise, Lively is committed to bridging today’s savings with tomorrow’s unknowns. Unlike traditional institutions hindered by bureaucracy, Lively’s commitment extends beyond initial set up to providing dedicated, ongoing support and education for every step. So each HSA can reach its maximum potential with minimal headache.

piggy bank on pink background


2024 and 2025 HSA Maximum Contribution Limits

Lively · May 9, 2024 · 3 min read

On May 9, 2024 the Internal Revenue Service announced the HSA contribution limits for 2025. For 2025 HSA-eligible account holders are allowed to contribute: $4,300 for individual coverage and $8,500 for family coverage. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

comparing hsa versus fsa


What is the Difference Between a Flexible Spending Account and a Health Savings Account?

Lauren Hargrave · February 9, 2024 · 12 min read

A Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA) provide up to 30% savings on out-of-pocket healthcare expenses. That’s good news. Except you can’t contribute to an HSA and Healthcare FSA at the same time. So what if your employer offers both benefits? How do you choose which account type is best for you? Let’s explore the advantages of each to help you decide which wins in HSA vs FSA.

Benefits of HSA employer matching

Health Savings Accounts

Ways Health Savings Account Matching Benefits Employers

Lauren Hargrave · October 13, 2023 · 7 min read

Employers need employees to adopt and engage with their benefits and one way to encourage employees to adopt and contribute to (i.e. engage with) an HSA, is for employers to match employees’ contributions.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.



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